Optical fiber preform as a hi-tech product and a crucial link in the optical fiber industry chain contributes to 70% or so of profit margin. Global 4G and FTTH construction at dusk leads to the shrinking demand for optical fibers and cables, so does for optical fiber preform. But the 5G construction produces a growing demand for not only optical fibers but optical fiber preform.
In 2019, the global optical fiber preform capacities were estimated to hit 26,676 tons and output approximately 18,902 tons, with the capacity utilization at 70.9% and showing a severe supply glut arising from the successive production of the construction projects invested by Chinese enterprises over the recent years. It is expected that the world’s optical fiber preform capacity will rise to 30,436 t/a in 2020.
China has been the largest producer of optical fiber preform in the world alongside production expansion of Chinese competitors, with its capacity registering 16,426 t/a (basically meeting the domestic market demand) with a 61.6% share of the global total in 2019, while China’s output of optical fiber preform edge down 1.1% on a like-for-like basis to roughly 8,800 tons largely due to the sluggish demand in optical fibers and cables market amid completion of 4G construction and FTTH as well as the infancy of 5G construction.
With high technical barriers, the optical fiber preform industry harbors about 20 companies worldwide encompassing US-based Corning, Italy-based Prysmian, Japanese players Sumitomo Electric Industries, Shin-Etsu Chemical and Fujikura as well as Chinese peers like Yangtze Optical Fibre and Cable Joint Stock Co., Ltd. (YOFC), Hengtong Optic-electric, Futong Group, and Jiangsu Zhongtian Technology (ZTT). In 2019, the top five giants swept a combined 58.2% share by capacity, of which Corning ranked first with 15.5% share, closely followed by YOFC 15.2%.
Still, some Chinese enterprises are expanding optical fiber preform capacities. FiberHome Technologies, for instance, publicized on November 28, 2019 the prospectus about raising funds by issuance of convertible corporate bonds, with a plan to raise RMB3,088.35 million of which RMB500 million is to be earmarked for FiberHome Ruituo Technology’s optical fiber preform project (phase-I). Far East Smarter Energy Co., Ltd. rolled out its plan for private issuing of A-shares 2020, projecting to raise a total capital of no more than RMB2.552 billion including RMB1.502 billion for the optical fiber preform, optical fibers and cables industry chain construction project. In future, the Chinese optical fiber preform industry will be further out of sync, where competition will prick up with an ever higher concentration.
5G construction is in full swing around the globe, triggering the robust demand for optical fiber preform. What’s more, overseas FTTX development and submarine cable systems call for more optical fiber preform. As estimated, the global demand for optical fiber preform will grow to 25,880 tons and China’s 12,600 tons in 2026.
The report highlights:
Global optical fiber preform market (status quo, demand and supply, regional distribution, prices and competitive landscape);
Chinese optical fiber preform market (development environment, history, demand and supply, import and export, prices and competition pattern);
Development of optical fibers and cables market in China and the world;
13 global and Chinese optical fiber preform companies (operation, optical fiber preform business, etc.)